Christie & Co is confident of continuing ‘investor appetite’ following publication of its first Care Market Review report, which analyses the transactional healthcare market in the UK.
The report finds strong demand for care home opportunities throughout the UK, with a 78 per cent increase in completions from 2020 to 2022 and deal numbers significantly ahead of pre-pandemic levels. However, the report suggests that the trend moving forward will be driven by a number of factors, including the availability of capital and the alignment of vendors’ pricing expectations relative to prevailing market conditions.
New instruction levels increased by around 30 per cent from 2020 to 2021 and they continue to grow as operators capitalise on buoyant market conditions.
Christie & Co notes that its most active buyer type over the past five years has been independent operators with one or two homes which, on average, transacted on 41 per cent of deals in the sector. So far in 2022, corporate operators and investors have made up 33 per cent of deals, while first-time buyers made up just 7 per cent – a fall of 9 per cent since 2018 which is reflective of the increasing funding challenges for first-time buyers, the regulatory burden of the CQC, and the increase in quality, higher value stock on the market.
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